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To: Always Right
"So Churches are exempt only for items they purchase for intermediate or export sales. Not for their normal course of business."

I'll ignore your childish personal attacks and say that you are totally incorrect and that this link clearly shows it.

To save you some reading the paper notes:

"There is no definition of church in the FairTax legislation. Churches or houses of worship come under the definition of not-for-profit organizations. "

It also says:

"Religious organizations that meet the above criteria are issued a “qualification certificate” upon application to the state sales tax administering authority (on a form prescribed by the U.S. Secretary of the Treasury).

The FairTax does not treat tithes, dues, contributions, and similar payments to religious organizations or qualified not-for-profit organizations as payments for taxable property or services subject to tax. Individuals make such payments or contributions to religious or other not-for-profit organizations tax free.

If churches or non-profits provide taxable services at no charge (they run a soup kitchen for the poor, for example), these services are not subject to tax.

Taxable property and services purchased by a qualified not-for-profit organization “for business purposes” are not taxable. The organization must present its qualification certificate to the seller when making a purchase in order for the sale to be tax exempt. If a religious organization or qualified not-for-profit provides taxable property or services in connection with contributions, dues or other payments to the organization, then it is required to treat the provision of the taxable property or services as a taxable purchase at the fair market value of the taxable property or services.

In other words, purchases for business purposes are tax exempt and sales to consumers are taxable, e.g., a church selling Bibles. The church pays no tax when it purchases the Bibles but it must collect sales tax when it sells the Bibles. The church is likewise responsible for remitting the tax to the state sales tax authority.

As the FairTax exempts savings and investment, there is no tax on interest earnings on endowments – assets, funds, or property donated to a not-for-profit organization as a source of income. "

Despite your quaint tirade in living color the situation seems clear enough and I believe most prople will understand even if you do not. Another clunker from you!!

756 posted on 10/24/2006 11:35:33 AM PDT by pigdog
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To: pigdog
PIGDOG:  Despite your quaint tirade in living color the situation seems clear enough and I believe most prople will understand even if you do not. Another clunker from you!!

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LOL, in other words, you can't dispute it!!!  I thought you might be good for some long-winded babble filled with spin, lies and ignorance.  Oh well.

759 posted on 10/24/2006 11:40:13 AM PDT by Always Right
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To: pigdog
Taxable property and services purchased by a qualified not-for-profit organization “for business purposes” are not taxable.

Exactly what I said. "For business purposes" means items purchased for INTERMEDIATE AND EXPORT SALES, not for normal operations. A preist salary under the fairtax is TAXABLE. If you pay a preist $30,000, the church will need to remit $9,000 additional to the fairytax collector. Something you have denied over and over.

762 posted on 10/24/2006 11:47:54 AM PDT by Always Right
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